Perhaps all Canadian banks routinely send out requests, at online account sign-in, to their customers to obtain info on tax residency — and this is old news.
Anyway, this morning I received this online request, for the first time, while trying to sign into my online account at my Canadian bank. I am a long-term customer at the bank:
Request to validate your tax residency information
To comply with Canadian tax law, we’re required to have clients validate that their tax residency information we have on file is correct and complete.
Our records show that your tax residency information needs to be confirmed.
Here are the next steps you need to take
• Online Banking: Select Customer Services > Change your tax residency
• Mobile Banking: Select Customer Services > Personal information > Change your tax residency
Please review your tax residency information now and update as required.
Tax residency is a method used by the Canada Revenue Agency (CRA) and by other countries to determine how much tax you should pay. Most countries, including Canada, determine taxes based on the amount of time you spend in the country, rather than your citizenship. For instance, some Canadians spend the winter months outside of Canada. The U.S., however, taxes all U.S. citizens as U.S. residents. It is your responsibility to determine your tax residency status in other countries.
[Customer clicks on “I understand” and is then asked three questions:]
Are you a tax resident of Canada? Yes/No
Are you a U.S. person for tax purposes? Yes/No
Do you pay taxes in any other country? Yes/No
By selecting continue I declare, as required by Canadian law, that the tax residency information and U.S. person status (including my Tax ID number) are to the best of my knowledge and belief, correct and complete. Failure to provide may result in my account information being reported to the relevant authority and I may be subject to a penalty under the Income Tax Act.”